News Story

Insurance News Story


Car Insurance Fraud on the Rise

Published: 28/01/2011 by Comments

In the UK, there is a major problem sweeping the area. British drivers have been giving false information to lower their car insurance premiums, and warnings are now being issued. The Association of British Insurers has issued a warning that any drivers giving false information or failing to disclose any important factors run the risks of conviction, invalidating their insurance, and having issues with purchasing car insurance in the future.

When questioned by the ABI about whether a parent should take his or her child’s insurance in his or her own name (when the child is the main driver), fifty-three percent of 2, 608 drivers stated that it would be either borderline or acceptable. Also, when questioned, one in five drivers stated that they would lie about their last insurance claim, twelve percent said they would hide convictions they obtained when behind the wheel, and 10 percent were willing to alter personal information (age, address, or job) in order to lower their insurance premiums.

As for the insurance companies, they really do have a leg-up on the situation. If the insured is found to be guilty of falsifying and/or leaving out important information, the company has the right to refuse payment. By doing so, the driver has to pay out-of-pocket, plus will deal with the other penalties aforementioned in this article.

By “cracking down”, the ABI is hoping to end all issues with the dishonest drivers and help the car insurance companies who have fallen prey to them.

Tags from this article

Similar news stories...